Gold prices, rupee lose ground

Yellow metal falls by Rs800 to Rs273,200; currency sheds 10 paisa to 278.47/$

KARACHI:

Gold prices and the Pakistani rupee both experienced a decline on Friday, a rare occurrence as the two typically move in opposite directions.

While gold prices fell in line with international trends, the rupee depreciated slightly against the US dollar in the inter-bank market.

In the local market, the price of gold per tola was Rs273,200, marking a decrease of Rs800, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). On Thursday, the price of gold per tola had risen by Rs1,400.

According to APGJSA, the rate in the international market was $2,620 per ounce, down by $8.

Interactive Commodities Director Adnan Agar pointed out that the decline remained modest, as the gold market was slow due to the Christmas holidays. Investors wait for price dips to make purchases and sell at higher prices.

Internationally, gold prices slipped as elevated US Treasury yields dimmed non-yielding bullion's allure in a holiday-thinned week, with markets focused on President-elect Donald Trump's return to office and the potential impact of his inflationary policies on Fed's 2025 outlook.

Spot gold fell 0.8% to $2,614.64 per ounce and US gold futures were down 0.9% to $2,630.10.

The dollar index headed for a fourth straight week of gains, reducing gold's appeal for holders of other currencies, while the benchmark US 10-year yields were trading near their highest level since May 2, which they hit on Thursday.

The Pakistani rupee saw a slight decline against the US dollar, depreciating by 0.04% in the inter-bank market on Friday. At the close of trading, the rupee stood at 278.47, losing 10 paisa against the greenback, compared to 278.37 on Thursday, according to the State Bank of Pakistan (SBP).

Currency market expert Malik Bostan attributed the depreciation to year-end pressures, as banks and companies make calendar year payments to foreign investors and parent companies.